SFD signs $240 million loan agreement to support Pakistan's Mohmand Multipurpose Dam Project
11 April 2023
The Saudi Fund for Development (SFD) has signed a US$240 million loan agreement to support Pakistan's Mohmand Multipurpose Dam Project, which aims to improve the country's energy security and increase sustainable water supply for agriculture and human consumption.
The agreement was signed by the SFD CEO, Mr. Sultan Abdulrahman Al-Marshad, and the Federal Secretary for Ministry of Economic Affairs, Pakistan, Dr. Kazim Niaz. The project is expected to have a significant impact on Pakistan's energy and water sectors by generating 800 MW of electricity production capacity using renewable energy sources.
The storage of 1.6 million m3 of water will also support sustainable agricultural practices and enable irrigation of 6,773 hectares of new land. Furthermore, the project will increase the total cropping area from 1,517 hectares to 9,227 hectares in the province, facilitating agricultural activities. The project aligns with SDG-2 (Food Security), SDG-6 (Clean Water), and SDG-7 (Clean Energy) and embodies SDG-17 (Partnerships for the Goals).
The Mohmand Multipurpose Dam Project is co-financed by the Saudi Fund for Development, OPEC, Islamic Development Bank, and the Kuwait Fund for Arab Economic Development. During the agreement signing ceremony, the CEO of SFD emphasized the strong developmental ties between the Kingdom of Saudi Arabia and the Islamic Republic of Pakistan. Dr. Kazim Niaz expressed his sincere appreciation and gratitude to the Kingdom of Saudi Arabia for its unwavering support towards the development sectors in Pakistan through the SFD.
